HomeMy WebLinkAbout2071 OrdinanceCITY OF PASCO, WASHINGTON
ORDINANCE NO. 2071
AN ORDINANCE of the City of Pasco, Washington,
providing for the issuance of $895,000.00 par value
of "Limited Inter -City Bridge General Obligation
Bonds, 1979," of the City to provide the moneys
required to repay the State of Washington the
City's remaining obligation including principal
and interest thereon estimated to August 1, 1979,
in the total sum of $786,150.00 under the Agree-
ment entered into between the City and the City
of Kennewick, Washington, under date of January 23,
1975, as supplemented by various Supplemental
Agreements thereafter entered into between such
parties, pertaining to the financing of the
Pasco -Kennewick Inter -City Bridge Project over
the Columbia River as originally authorized by
Ordinance No. 1434 passed by the City Council
and approved by the Mayor on July 7, 1970, and
to pay the City's share of the cost of demolition
of the old Pasco -Kennewick Bridge and the cost
of the issuance of the general obligation bonds
herein authorized; specifying the maturities and
fixing the form and maximum effective interest
rate of such bonds; establishing a "Limited Inter -
City Bridge General Obligation Bond Fund, 1979;"
and providing for the sale of such bonds.
WHEREAS, the City of Pasco, Washington (the "City"),
heretofore committed itself to the construction of the Pasco -
Kennewick Inter -City Bridge Project and by Supplemental Agreement
entered into by and between the City and the City of Kennewick, Wash-
ington, and the State of Washington acting by and through the
Washington State Highway Commission and the Department of Highways
dated July 15, 1975,.the City agreed that by no later than July 29,
1975, it would adopt an appropriate ordinance authorizing the issuance
of general obligation bonds in a total amount of $1,163,000.00,
the proceeds of which would be pledged to pay the City's share
of construction costs as provided in the Agreement dated January 23,
1975, and the City authorized the issuance and sale of such bonds
so authorized from time to time, subject only to the limitations of
indebtedness of cities as set forth in RCW 39.36.020(2), and
pursuant to such Supplemental Agreement, Ordinance No. 1723 was
passed by the City Council and approved by the Mayor on July 15,
1975, authorizing the issuance of general obligation bonds in such
total amount but not to exceed the amount as may be permitted
constitutionally or statutorily at the time of issuance of such
bonds to provide the remaining matching funds and the local share
required to complete the Pasco -Kennewick Inter -City Bridge Project;
and
WHEREAS, pursuant to Ordinance No. 1813 passed August 31,
1976, the City issued its "Limited Inter -City Bridge General Obliga-
tion Bonds, 1977," dated January 1, 1977, in the total principal
amount of $720,000.00, being the maximum amount which the City
could legally issue at that time within the limit up to 3/4 of 1%
of the value of the taxable property within the City permitted
without a vote of the electors to provide a portion of the City's
share of funds required to complete the construction of the Pasco -
Kennewick Inter -City Bridge Project; and
WHEREAS, the City of Kennewick, Washington, and the City
(as the "Agency") and the State of Washington entered into various
Supplemental Agreements supplemental to the original agreement
entered into between the parties under date of January 23, 1975,
whereunder the State of Washington provided State motor vehicle
funds required to enable such cities to obtain federal -aid matching
funds for the completion of the project in accordance with and to
meet the obligations becoming due and payable under federal law
and certain federal -aid project agreements, such advances by the
State to the cities being deemed a loan to be repaid to the motor
vehicle fund through withholding of a portion of the cities' motor
vehicle fuel tax apportionments; and
WHEREAS, the City has determined it to be in the best
interests of the City and its taxpayers that its remaining obliga-
tion to repay the State of Washington for such advances be satisfied
from the proceeds of the issuance and sale of general obligation
bonds anticipated to be issued bearing an interest rate less than
that required to be paid to the State of Washington and thereby
resulting in an interest saving to the City and that the City
contribute its share to the cost of demolition of the old Pasco -
Kennewick Bridge; and
WHEREAS, the actual and assessed valuation of the taxable
property of the City as ascertained by the last assessment for City
purposes for the calendar year 1979 is $221,725,732.00, and at the
time of the passage of this ordinance, the existing outstanding general
indebtedness of the City consists of $807,000.00 par value of general
obligation bonds and -$30,000 of interest-bearing warrants issued
within the limit up to 3/4 of 1% of the value of the taxable property
within the City permitted without a vote of the electors, and
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$1,079,000 par value of general obligation bonds issued within the
limit of 2-1/20 of the value of taxable property within the City
permitted pursuant to a vote of the electors within the City for
general municipal capital purposes, and the amount of indebtedness
for which bonds herein authorized to be issued is $895,000.00;
NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO
ORDAIN, as follows:
Section 1. The City of Pasco, Washington (herein called
the "City"), shall borrow money on the credit of the City and issue
negotiable general obligation bonds evidencing such indebtedness in
the amount of $895,000.00 to provide the money required to repay to
the State of Washington the City's remaining obligation, including
principal and interest thereon estimated to August 1, 1979, in the
total sum of $786,150.00, under the Agreement entered into between
the City of Kennewick, Washington, and the City (as the "Agency")
and the State of Washington under date of January 23, 1975, as
supplemented by various Supplemental Agreements thereafter entered
into between such parties, pertaining to the financing of the Pasco -
Kennewick Inter -City Bridge Project over the Columbia River as
originally authorized by Ordinance No. 1434 passed by the City Council
and approved by the Mayor on July 7, 1970, and to pay the City's
share of the cost of the demolition of the old Pasco -Kennewick
Bridge and the cost of the issuance of the general obligation bonds
herein authorized. Such general indebtedness to be incurred shall
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be within the limit up to 3/4 of 1% of the value of the taxable
property within the City permitted for general municipal purposes
without a vote of the qualified voters therein.
Section 2. The bonds shall be called "Limited Inter -
City Bridge General Obligation Bonds, 1979" of the City; shall be
dated August 1, 1979; shall be in denominations of $5,000.00 each;
shall be numbered from 1 to 179, inclusive; and shall bear interest
at an effective rate not to exceed 8% per annum, payable semiannually
on February 1 and August 1 of each year, as evidenced by coupons
attached to the bonds representing interest to maturity with full
obligation on the part of the City to pay interest at the bond rate,
from and after maturity, until the bonds, both principal and
interest, are paid in full. Both principal and interest are to be
paid in lawful money of the united States of America at the office
of the City Treasurer, or, at the option of the holder, at either
fiscal agency of the State of Washington in Seattle, Washington, or
New York, New York. The bonds shall be numbered and mature serially
in order of their numbers on August 1 of each year in the amounts
and in the maturity years as follows:
Bond Numbers
Maturity
(Inclusive)
Amounts
Year
1 to 5
$25,000
1981
6 to 11
30,000
1982
12 to 17
30,000
1983
18 to 23
30,000
1984
24 to 30
35,000
1985
31 to 37
35,000
1986
38 to 45
40,000
1987
46 to 53
40,000
1988
54 to 61
40,000
1989
62 to 70
45,000
1990
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71
to
80
50,000
1991
81
to
90
50,000
1992
91
to
101
55,000
1993
102
to
112
55,000
1994
113
to
124
60,000
1995
125
to
137
65,000
1996
138
to
150
65,000
1997
151
to
164
70,000
1998
165
to
179
75,000
1999
Section 3. The City hereby reserves the right to redeem
any or all of the bonds outstanding in whole, or in part in inverse
numerical order, on August 1, 1989, or on any semiannual interest
payment date thereafter, at par plus accrued interest to the date of
redemption.
Notice of such intended redemption shall be published in
the official newspaper of the City at least once not less than thirty
nor more than forty-five days prior to the call date, and a copy of
such notice shall be mailed within the same period to the original
purchaser or the account manager of the underwriter who purchases
the bonds. In addition, such redemption notice shall also be sent
to Moody's Investors Service, Inc., and Standard & Poor's Corporation
at their offices in New York, New York, but the mailing of such notice
to such New York corporations shall not be a condition precedent to
the redemption of such bonds. Interest on any bonds so called for
redemption shall cease on such call date upon payment of the redemption
price into the bond redemption fund for the bonds.
Section 4. The City hereby irrevocably pledges itself to
levy taxes annually, within the constitutional and statutory tax
limitations provided by law without a vote of the electors, upon
all property in the City subject to taxation in an amount sufficient,
together with other money legally available and used therefor, to
pay the principal of and interest on the bonds as the same shall
accrue, and the full faith, credit and resources of the City are
hereby irrevocably pledged for the payment of the principal and
interest on such bonds.
ing form:
Section 5. The bonds shall be substantially in the follow-
No. $5,0.000.0.
UNITED STATES OF AMERICA
STATE OF WASHINGTON
CITY OF PASCO
LIMITED INTER -CITY BRIDGE GENERAL OBLIGATION BOND, 1979
The City of Pasco, Washington (the "City"), is justly
indebted to and for value received hereby promises
to pay to bearer on the FIRST DAY OF AUGUST, 19—,
the sum of
FIVE THOUSAND DOLLARS
together with interest thereon at the rate of %
per annum, payable semiannually on February 1 and
August 1 of each year, interest to maturity being evi-
denced by and payable upon the presentation and
surrender of the attached interest coupons as they
severally become due, with full obligation on the part
of the City to pay interest at the same rate from and
after the maturity date, in the absence of coupons,
until this bond with interest is paid in full. This
bond is payable, both principal and interest, in lawful
money of the United States of America at the office
of the Treasurer of the City, or, at the option of the
holder, at either fiscal agency of the State of Wash-
ington in Seattle, Washington, or New York, New York.
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This bond is one of a total issue of $895,000.00
par value of bonds, all of like date, tenor and effect,
except for maturities [and interest rates if more than
one interest rate is bid], issued by the City for
general municipal purposes, for the purpose of providing
the moneys required to repay the State of Washington the
City's remaining obligation, including principal and
interest thereon estimated to August 1, 1979, in the
total sum of $786,150.00, under the Agreement
entered into between the City of Kennewick Washington,
and the City (as the "Agency"), and the State of
Washington under date of January 23, 1975, as supple-
mented by various Supplemental Agreements thereafter
entered into between such parties pertaining to the
financing of the Pasco -Kennewick Inter -City Bridge
Project over the Columbia River as originally authorized
by Ordinance No. 1434 passed by the City Council and
approved by the Mayor on July 7, 1970, and to pay the
City's share of the cost of demolition of the old
Pasco -Kennewick Bridge and the cost of the issuance
of the bonds of this issue, and is issued in full
compliance with the ordinances of the City and the laws
and Constitution of the State of Washington.
The City reserves the right to redeem any or all of
the bonds outstanding in whole, or in part in inverse
numerical order, on August 1, 1989, or on any semiannual
interest payment date thereafter, at par plus accrued
interest to the date of redemption.
Notice of such intended redemption shall be published
in the official newspaper of the City at least once not
less than thirty nor more than forty-five days prior to
the call date, and a copy of such notice shall be mailed
within the same period to [the original purchaser or the
account manager of the underwriter who purchases the bonds].
In addition, such redemption notice shall also be sent
to Moody's Investors Service, Inc., and Standard & Poor's
Corporation at their offices in New York, New York, but
the mailing of such notice to such New York corporations
shall not be a condition precedent to the redemption of
such bonds. Interest on any bonds so called for redemption
shall cease on such call date upon payment of the redemption
price into the bond redemption fund.
The City hereby irrevocably pledges itself to levy
taxes annually, within the constitutional and statutory
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tax limitations provided by law without a vote of the
electors, upon all property in the City subject to
taxation in an amount sufficient, together with other
money legally available and used therefor, to pay the
principal of and interest on the bonds of this issue as
the same shall accrue, and the full faith, credit and
resources of the City are hereby irrevocably pledged
for the payment of the principal of and interest on the
bonds.
It is hereby certified that all acts, conditions
and things required to be done precedent to and in the
issuance of this bond have been done, have happened and
have been performed as required by law, and that the
total indebtedness of the City, including this bond
issue, does not exceed any constitutional or statutory
limitations.
IN WITNESS WHEREOF, the City has caused this bond
to be signed by the facsimile signature of its Mayor
and attested by the manual signature of its City
Clerk and a facsimile reproduction of its corporate
seal to be imprinted hereon and the interest coupons
attached to be signed with the facsimile signatures
of those officials this first day of August, 1979.
CITY OF PSCO, WASHINGTON
By (facsimile signature)
Mayor
ATTEST:
City Clerk
The form of the interest coupons shall be substantially
as follows:
Coupon No.
(Unless the bond referred to below has been pre-
viously redeemed) On the FIRST DAY OF (FEBRUARY)(AUGUST)
19 , the CITY OF PASCO, WASHINGTON, upon presentation
and surrender of this coupon, will pay to the bearer at
the office of the Treasurer of the City, or, at the
option of the holder, at either fiscal agency of the
State of Washington in Seattle, Washington, or New York,
New York, the sum shown hereon in lawful money of the
United States of America, that sum being the semiannual
interest due that date upon its "Limited Inter -City
Bridge General Obligation Bond, 1979," dated August 1,
1979, and numbered
CITY OF PASCO, WASHINGTON
By (facsimile signature)
Mayor
ATTEST:
(facsimile signature)
City Clerk
Section 6. The bonds shall be printed or lithographed on
good bond paper and shall be signed by the facsimile signature of the
Mayor and attested by the manual signature of the City Clerk of the
City, with a facsimile reproduction of the corporate seal of the
City to be imprinted thereon, and the coupons shall bear the
facsimile signatures of the Mayor and the City Clerk.
Section 7. There is hereby created and established in
the office of the City Treasurer a special fund to be known and
designated as the "Limited"Inter-City Bridge General Obligation
Bond Fund, 1979." The accrued interest received, if any, shall be paid
into the "Limited Inter -City Bridge General Obligation Bond Fund, 1979,"
and the principal proceeds received from the sale of the bonds shall
be paid into the "Inter -City Bridge Construction Fund" of the City
created and established by Ordinance No. 1813 and used to repay the
State of Washington the City's remaining obligation on such Inter -
City Bridge Project and the City's share of the costs of the demolition
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of the old Pasco -Kennewick Bridge and the costs of issuance and
sale of the bonds. All taxes collected for and allocated to the
payment of the principal of and interest on the bonds and any other
moneys lawfully available therefor by action of the City Council
shall hereafter be deposited in the "Limited Inter -City Bridge
General Obligation Bond Fund, 1979."
The City covenants that it will make no use of the proceeds
of the bonds or other funds of the City at any time during the term
of the bonds which, if such use had been reasonably expected at the
date the bonds are issued, would have caused the bonds to be arbitrage
bonds within the meaning of Section 103(c) of the United States
Internal Revenue Code of 1954, as amended, and the applicable
regulations promulgated thereunder.
Section 8. The bonds shall be sold for cash at public
sale for not less than par, plus accrued interest, upon sealed bids
to be received at the office of the City Manager up to the date and
hour stated in the Notice of Bond Sale hereinafter directed to be
given.
Notice calling for bids to purchase such bonds shall be
published once a week for four consecutive weeks in the official
newspaper of the City. Such notice shall specify that bids for the
purchase of the bonds shall be received at the office of the City
Manager at the City Hall, Pasco, Washington, on July 23, 1979,
until 2:00 o'clock p.m. local time, and such bids will be publicly
opened by the City Manager at such time. The bids will be considered
and an award made by the City Council at a special meeting thereof to
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be held in the Council Chambers in the City Hall on the same date
commencing at 8:00 o'clock p.m. local time.
A copy of the notice shall, at least three weeks prior to
the date fixed for the sale, be mailed to the State Finance Committee,
Olympia, Washington.
Bids shall be invited for the purchase of the Bonds with
fixed maturities in accordance with the schedule specified in
Section 2 hereof.
The notice shall specify the maximum effective rate of
interest the Bonds shall bear, namely, 8% per annum, and shall require
bidders to submit a bid specifying:
(a) The lowest rate or rates of interest and
premium, if any, above par at which the bidder
will purchase the Bonds; or
(b) The lowest rate or rates of interest at which
the bidder will purchase the Bonds at par.
Coupon rates shall be in multiples of 1/8 or 1/20 of 1%,
or both. No more than one rate of interest may be fixed for any
one maturity. Only one coupon will be attached to each of the
Bonds for each installment of interest thereon, and bids providing
for additional or supplemental coupons will be rejected. The
maximum differential between the lowest and highest coupon rates
named in any bid shall not exceed 20.
For the purpose of comparing the bids only, the coupon rates
bid being controlling, each bid shall state the total interest cost
over the life of the Bonds and the net effective interest rate of the
bid.
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The Bonds shall be sold to the bidder making the best bid,
subject to the right of the City Council to reject any and all bids
and to readvertise the Bonds for sale in the manner provided by law,
and no bid for less than all of the Bonds shall be considered.
The City reserves the right to waive any informality or irregularity
in any bid or in the bidding process.
All bids shall be sealed, and, except the bid of the State
of Washington, if one is received, shall be accompanied by a deposit
of $44,750.00. The deposit shall be either by certified or cashier's
check made payable to the City Treasurer and shall be promptly
returned if the bid is not accepted. If the Bonds are ready for
delivery and the successful bidder shall fail and neglect to complete
the purchase of the Bonds within forty days following the acceptance
of its bid, the amount of its deposit shall be forfeited to the City
and in that event the City may accept the bid of the one making the
next best bid. The good faith deposit will be applied upon the
purchase price of the bonds at the time of settlement and, pending
the delivery of the bonds, the City may invest such good faith
deposit solely for its benefit. If there be two or more equal bids
for not less than par plus accrued interest and such bids are the
best bids received, the City Council shall determine by lot which
bid shall be accepted. The Bonds will be delivered to the successful
bidder at the office of the City Treasurer, or in the City of
Seattle, at the City's expense, or at such other place as the City
Treasurer and the successful bidder may mutually agree upon at.the
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purchaser's expense. A no -litigation certificate in the usual form
will be included in the closing papers.
Any bid presented after the hour specified for the receipt
of bids will not be received, and any bid not accompanied by the
required bid deposit at the time of opening such bid will not be
read or considered.
The City Clerk shall be and is hereby authorized and
directed to publish notice of the purchase of the Bonds in the
manner required by law in accordance with the provisions of this
section. Such notice shall provide that the City will cause the
Bonds to be printed or lithographed and signed and will furnish the
approving legal opinion of Messrs. Roberts, Shefelman, Lawrence, Gay
& Moch, municipal bond counsel of Seattle, Washington, covering the
Bonds without cost to the purchaser, the opinion also being printed
on each bond. Bond counsel shall not be required to review or express
any opinion concerning the completeness or accuracy of any official
statement or other sales material issued or used in connection with
the Bonds, and bond counsel's opinion shall so state.
Section 9. Any act taken pursuant to the authority of and
prior to the effective date of this ordinance is hereby ratified and
confirmed.
Section 10. This ordinance shall take effect five days
after its publication as provided by RCW 35A.13.190.
PASSED BY THE COUNCIL OF THE CITY OF PASCO, WASHINGTON,
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�. '* • tin ' , ,
AT A SPECIAL OPEN PUBLIC MEETIQG THEREOF OF WHICH DUE NOTICE HAD BEEN
GIVEN IN THE AANNER REQUIRED BY LAW, AND SIGNED IN AUTHENTICATION
THEREOF, THIS 25th DAY OF JUNE, 1979.
A E T:
City Clerk
APP nO-VE Dr, AS TO F Z:
-A-City Atto ey
Date of Publication:
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Mayor